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Models and Tabu Search Metaheuristics for Service Network Design with Asset-Balance Requirements

Centre for Traffic and Transport, Technical University of Denmark, DK-2800 Kongens Lyngby, Denmark
Département de Management et Technologie and Centre Interuniversitaire de Recherche sur les Réseaux d'Entreprise, la Logistique et le Transport (CIRRELT), ESG, U.Q.A.M., Montreal, Quebec H3C 3P8, Canada
Centre for Traffic and Transport, Technical University of Denmark, DK-2800 Kongens Lyngby, Denmark
mbp{at}berlinnov.dk
theo{at}crt.umontreal.ca
ogm{at}ctt.dtu.dk

This paper focuses on a generic model for service network design, which includes asset positioning and utilization through constraints on asset availability at terminals. We denote these relations as "design-balance constraints" and focus on the design-balanced capacitated multicommodity network design model, a generalization of the capacitated multicommodity network design model generally used in service network design applications. Both arc- and cycle-based formulations for the new model are presented. The paper also proposes a tabu search metaheuristic framework for the arc-based formulation. Results on a wide range of network design problem instances from the literature indicate the proposed method behaves very well in terms of computational efficiency and solution quality.

Key Words: service network design; design conservation constraints; tabu search
History: Received: March 2007; revised: October 2007; accepted: February 2008.

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